Interestingly, Ethereum bulls have broken the $400 overhead resistance after two weeks of price tussle between buyers and sellers. The biggest altcoin has attained a new high of $440.
This is an indication that the uptrend has resumed after stoppage at the overhead resistance. Unfortunately, buyers are facing resistance at the recent high as price reaches the overbought region of the market. When prices reach an overpriced region, it becomes imperative for sellers to emerge to push prices down.
However, in exceptional cases, this may not hold. For instance, in a strong trending market, the overbought or oversold conditions may not hold. Today, the coin is facing resistance at $440. Ethereum may be compelled to make a downward move. If prices fall, it may retrace to $420 and then resume a fresh uptrend. On the upside, a break above $440 will push ETH to the targeted price of $480 high.
With the recent rebound, Ether is above 80% range of the daily stochastic. The coin is now in a strong bullish momentum. It is also trading in the overpriced region of the market. Ethereum price is well above the EMAs which indicates a further upward move. The recent rebound was above the 12-day EMA. In the same vein, the EMAs are pointing northward indicating the uptrend.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
On the 4 –hour chart, Ether has reached the $440 high but unable to continue with the upward. A red candle body has tested the 0.786 Fibonacci retracement level. This indicates that price will rise and reach 1.272 Fibonacci extension level or the $440 high. Thereafter, Ether will retrace to 0.786 retracement level ($420) where it originated. Ethereum will resume a fresh uptrend after the retracement.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.